Budget Roundup

Business rates revaluation cycle shortened
Revaluations of business premises will take place every three years after 2022, the chancellor, Philip Hammond, has announced. The government will consult on the measures in the spring. In addition, budget documents say that councils will be fully compensated for any loss of income resulting from the chancellor’s decision to bring forward to 1 April 2018 the planned switch in business rate rises from RPI to CPI inflation. A further announcement will see the continuation of the £1,000 business rate discount for pubs with a rateable value of up to £1,000 for 2018/19.

Local infrastructure borrowing rate confirmed
The government has confirmed a new discounted local infrastructure rate available through the Public Works Loan Board. Up to £1bn will be available at the new rate of gilts +60 basis points, which will be available for three years to support projects that are “high value for money”. Details of the bidding process will be published in December.

London business rates pilot agreed
The capital has been given the go-ahead for a business rates pool which will allow it to retain 100% of business rates income growth. The pool will begin next year and is expected to be worth around £240m during the year. Mayor Sadiq Khan welcomed the move but said he would continue to lobby for further financial powers for the capital. Other new pilots are set to be announced after an assessment by DCLG.

Consultation on infrastructure levy changesGovernment will consult on detailed proposals for changes to the Community Infrastructure Levy (CIL) regime. Proposals will include removing restrictions on Section 106 pooling towards a single piece of infrastructure under some circumstances; speeding up the process of setting and revising CIL; allowing authorities to set rates which better reflect the uplift in land values between a proposed and existing use; changing indexation of CIL rates to house price inflation, rather than build costs; and allowing combined authorities and planning joint committees with statutory plan-making functions to levy a strategic infrastructure tariff.

And the rest of local government news

Cullen joins London CIVKevin Cullen has been appointed client relationship director at local government pension fund pool, the London Collective Investment Vehicle. Cullen joins the London CIV after spells at UBS, State Street and most recently Insight. He replaces Jill Davys, who served in the role from 2016.

County council funding ‘unfair’Funding for county councils is “chronically unfair” according to the County Councils Network. The representative body, which held its annual conference last week, said that counties receive almost 50% less funding per head for public services than their counterparts in cities. Paul Carter, chairman of CCN and leader of Kent County Council, said: “This impacts on the daily lives of our residents, all whilst they unfairly subsidise services enjoyed in other parts of the country through higher council tax bills. This is outdated and chronically unfair.”

Borough launches ‘ethical debt collection’
London Borough of Hammersmith & Fulham has announced plans to end the use of bailiffs for council tax debt. The council and its private partner 1st Credit will launch a new “ethical debt collection” initiative which is also aimed at helping residents avoid debt in the first place. “Heavy handed debt collection in the public sector is counter-productive. court action, bailiffs and lawyers all cost money, and can create high levels of stress and anxiety in families that find themselves in debt,” according to Max Schmid, the council’s cabinet member for finance.

Guy Ware: The business rates retention row of ducks: Business rates retention is delayed but is this an opportunity to put the funding of local services on a sustainable footing for the foreseeable future? Only if four key questions[...] dlvr.it/QKjLkG#localgovpic.twitter.com/C2xCNViBFE

Quartet of councils lined up for Municipal Bond Agency’s first issue: Four councils are poised to be involved in the The UK Municipal Bonds Agency’s debut bond issue after Moody’s gave the agency an Aa3 credit rating. Moody’s said the… dlvr.it/QKCqdp#localgov

NAO calls on Whitehall to confront long-term funding of local government: The government’s fragmented approach to oversight of council finances, and the absence of a long-term funding plan are increasing risks to statutory services, according… dlvr.it/QKBQfR#localgovpic.twitter.com/5otTR1wPa5

LPP kicks off first fixed income fund: Local Government Pension Scheme pool, Local Pensions Partnership, has launched its first fixed income fund. The £320m fund is aimed at delivering long-term risk-adjusted returns on global fixed income… dlvr.it/QK3lSM#localgov

Countdown to LATIF North treasury conference in Manchester: There are just over two weeks to go before Room151’s inaugural treasury conference for the north of England chaired by Manchester City Council’s Tim Seagrave and featuring insight from… dlvr.it/QJy2lV#localgov

100% business rates retention could create inequalities: The government’s plan to allow councils to retain 100% of business rates income could encourage greater inequality between councils without promoting growth, according to a new report… dlvr.it/QJJR6v#localgovpic.twitter.com/yiEkObFvel

Leeds offers business loans through peer-to-peer platform: Leeds City Council is to use a peer-to-peer lending platform to lend money to local businesses. The authority has decided to use the rebuildingsociety.com platform — based in the[...] dlvr.it/QJJDWz#localgov

Northamptonshire palns for £10m in cuts a week after ‘unlawful’ budget: Northamptonshire County Council has approved a revised budget for 2018-19, a week after its auditors warned that its original plans were potentially unlawful. The authority… dlvr.it/QJGQy2#localgov

Carillion collapse causes £5m loss to LGPS funds: Three Local Government Pension Scheme funds have lost up to £5m as a result of direct investments with Carillion, according to an assessment of the impact of the company’s liquidation.[...] dlvr.it/QJGHXq#localgov

Helen Randall: Court ruling over Haringey’s development vehicle offers clarity to councils: Politics killed the controversial Haringey Development Vehicle but a challenge through the courts failed. Helen Randall explains what the ruling means… dlvr.it/QHsBk0#localgovpic.twitter.com/JgYrPCH8E4

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